Hillingdon Council Cabinet Member and Officer Decisions
New Allocation Of S106 Contributions 2023/24: Construction Training - BUILD Training NVQ Scheme
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Democratic Services Location: Phase II Ext: 0692 DDI: 01895 25 0692 CMD No: 875 To: COUNCILLOR MARTIN GODDARD CABINET MEMBER FOR FINANCE c.c. All Members of th e Residents’ Services Select Committee c.c. Sherly Dixon – Resources Directorate c.c. Nicola Wyatt – Resources Directorate c.c. Perry Scott – Corporate Director of Place Date: 11 August 2023 Non-Key Decision request Form D NEW ALLOCATION OF S106 CONTRIBUTIONS 2023/24: CONSTRUCTION TRAINING – BUILD TRAINING NVQ SCHEME Dear Cabinet Member Attached is a report requesting that a decision be made by you as an individual Cabinet Member. Democratic Services confirm that this is not a key decision, as such, the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 notice period does not apply. You should take a decision on or after Monday 21 August 2023 in order to meet Constitutional requirements about publication of decisions that are to be made. You may wish to discuss the report with the Corporate Director before it is made. Please indicate your decision on the duplicate memo supplied, and return it to me when you hav e made your decision. I will then arrange for the formal notice of decision to be published. Ryan Dell Democratic Services Officer Title of Report: New Allocation of S106 Contributions 2023/24: Construction Training – Build Training NVQ Scheme Decision made: Reasons for your decision: (e.g. as stated in report) Alternatives considered and rejected: (e.g. as stated in report) Signed ……………………………………………………… Date……………………. Cabinet Member for Finance Cabinet Member Report – 11 August 2023 Page 1 Part I – Public NEW ALLOCATION OF S106 CONTRIBUTIONS 20 23/24: CONSTRUCTION TRAINING – BUILD TRAINING NVQ SCHEME Cabinet Member Councillor Martin Goddard Cabinet Portfolio Cabinet Member for Finance Officer Contacts Sheryl Dixon – Resources Directorate Nicola Wyatt – Resources Directorate Papers with report None HEADLINES Summary To seek approval to allocate funds from the S106 contributions currently held at S106 case references PPR/116/382C, PPR118/384C. PPR119/385A & PPR/126 /396B towards the provision of a NVQ Construction Training Programme to be delivered by BUILD Training. Putting our Residents First The report supports the Council objectives of strong financial management. Financial Cost This report seeks to allocate £92,900 from identified S106 construction training contributions held by the Council towards the implementation of a NVQ Construction Training Programme to be delivered by BUILD Training as outlined in the report. Relevant Select Committee Residents’ Services Select Committee. Relevant Wards All. Portfolio Member approval Councillor Susan O’Brien Councillor Eddie Lavery RECOMMENDATION That the Cabinet Member for Finance a pproves a total of £ 92,900 from the S106 construction training contributions held by the Council is allocated and spent towards the implementation of an NVQ Construction Training Programme to be delivered by BUILD Training. Reasons for recommendation In accordance with the Council Constitution, the allocation of Section 106 (S106) and Section 278 (S278) funds is required to be formally approved by the Cabinet Member for Finance on a case- by-case basis – and any capital release, in conjunction with the relevant Cabinet portfolio holder. Cabinet Member Report – 11 August 2023 Page 2 Part I – Public This report requests the approval for the S106 funds held at the case references detailed in this report to be committed as outlined in this report. Alternative options considered/ risk management The Cabinet Members may agree to fund the scheme and / or suggest alternative projects to which funds could be allocated within the terms of the relevant legal agreements. If the S106 funds are not allocated to an appropriate scheme, the unspent funds may need to be refunded. Select Committee comments None at this stage. SUPPORTING INFORMATION 1. Planning obligations, or S106 agreements, are an established mechanism for mitigating planning effects arising from development proposals. The agreements are usually negotiated within the context of planning applications, between l ocal planning authorities and persons with an interest in the piece of land (owners, leaseholders or developers). They are intended to make development acceptable, which would otherwise be unacceptable in planning terms. 2. Any S106 monies generated from planning agreements must be spent on their intended purpose and that the associated development contributes to the sustainability of the area by addressing the impacts of the development proposals. As a result, expenditure of S106 funds must relate to a specific development and must be in accordance with the corresponding legal agreement. If a contribution is not used for the intended purpose or not spent within the period allocated in the S106 agreement, the monies may need to be returned. Planning Background – developer obligations taken towards construction training and workplace coordinator 3. The contributions outlined in Table 1 below were secured from planning applications which were expected to generate significant employment opportunities during the construct ion phase of the development. Planning permission was therefore approved subject to the developer providing a financial contribution towards the cost of providing construction training courses and / or the provision of a workplace coordinator to coordinate "on site" training and employment opportunities arising from construction schemes in the Borough. The level of contribution is calculated in proportion to the size of the development and the build costs of the scheme, and in accordance with the Council’s Supplementary Planning Document on Planning Obligations 2008 and updated in July 2014. S106 allocation 4. Officers are requesting that funds from the S106 construction training contributions, currently held by the Council and listed in Table 1 below, are allocated and spent towards the BUILD Training NVQ Construction Training Programme as outlined in para graphs 5- 11 below. Cabinet Member Report – 11 August 2023 Page 3 Part I – Public Table 1 - Details of S106 Contributions BUILD Training– NVQ Construction Training Programme 5. The Council is continuing to develop its programme to support residents into employment and maximise training opportunities in the construction sector, via the use of construction training agreements with major developers in the Borough. In some instances , financial contributions are received from developers toward the cost of providing training courses delivered by recognised providers within the authority’s area. 6. Over the past three y ears, officers have worked closely with a Hillingdon- based organisation, Build School of Construction Training Ltd (Build Training) who uniquely specialise in working with individuals who present with a range of challenges but who are genuinely interested in the potential of a career in construction. In addition to training, Build Training provides mentoring, support with life skills and development of self -esteem. It is, as far as officers are aware, the only B orough-based construction training organisation currently providing this level of support to residents. 7. The centre is accredited to deliver a range of construction related qualifications and is currently in the process of expanding its offer to embrace emerging green skills technology, to meet the growing skills needs within the sector. Build Training has well established relationships with various organisations including Job Centre Plus; the construction training coordinator service, and a range of construction employers offering opportunities across all trades. 8. In September 2020, approval was obtained to fund Build Training to run a bespoke training programme (Cabinet Member Decision 06/10/2020). The Programme aimed at supporting 50 unemployed residents to obtain qualifications and employment. Residents were mainly sourced from Job Centre Plus. The programme achieved impressively well with all candidates securing employment and the target was exceeded. O fficers are therefore looking to commit further funds to Build Training, from the S 106 training contributions currently held by the Council to further enhance local training provision. 9. Build Training has i dentified significant skills gaps in people with existing Level 2 and 3 qualifications, often obtained through college study, who find themselves unemploy ed as Cabinet Member Report – 11 August 2023 Page 4 Part I – Public they only achieved a technical certificate (theory component) whereas employers require practical industry experience, evidenced by a full NVQ qualification, for employment. They therefore propose to deliver an intensive NVQ programme to fill known skills gaps in the following sectors: • plumbing, • renewable energy, • energy efficiency, • general maintenance. 10. This training will be supplemented by enrichment classes to get learners job ready, and each pathway will include green skills technology as standard. The programme aims to support 18 learners over a 6-month period at a cost of £92,9 00. Costs are as outlined in the table below. Table 2 - Costs Qualification Number of People Cost per Person Total Cost Level 2 NVQ Plumbing Diploma with Renewable Energy knowledge. 2 £3,900 £7,800 Level 2 Plumbing TECH Diploma with Renewable Energy 7 £6,800 £47,600 Level 2 NVQ Maintenance Diploma with Renewable Energy knowledge. 2 £3,000 £6,000 Level 2 NVQ maintenance Plus (including electrical installation) 7 £4,500 £31,500 18 £92,900 11. One of the attractions of the scheme is the emphasis on Green Skills t raining. Build Training will also undertake to source all the work placement opportunities that the scheme requires from their existing construction sector contacts. This means that the scheme will operate alongside the Council’s current S106 programme of site- based training on the Borough’s development sites and will therefore serve to boost the number of skilled construction operatives in the Borough, without adversely impacting available placements on existing schemes. Officers believe the programme outcomes will provide tangible evidence of the Council support for the Green Skills agenda. Financial Implications The report requests the allocation of the following Section 106 (S106) contributions as follows: Cabinet Member Report – 11 August 2023 Page 5 Part I – Public S106 Funding Reference Scheme Amount Time Limit to Spend PPR/116/382C Kitchener House, Warwick Road, West Drayton 16,770 Apr-26 PPR/118/384C Caxton House, Trout Road, Yiewsley 35,416 N/A PPR/119/385A Frank Welch Court, High Meadow Close, Pinner 26,307 N/A PPR/126/396B Unit 3, Millington Road, Hayes 14,407 N/A Total S106 £92,900 The above S106 contributions are required to be allocated towards the NVQ Construction Training programme, which will be delivered by Build Training (construction training and employment initiative). All of the above S106 contributions, meet the conditions stipulated in the S106 agreements, and if approved will reduce the call on Council resources. RESIDENT BENEFIT & CONSULTATION The benefit or impact upon residents, service users and communities The recommendations will enable external funds to be spent to maximum effect to provide viable improvements for the benefit of local communities. Consultation carried out or required Not required. CORPORATE CONSIDERATIONS Corporate Finance Corporate Finance concurs with the financial implications above, noting that the contribution towards the NVQ Construction Training programme, which will be delivered by Build Training (construction training and employment initiative) will be funded from developer contributions in accordance with the planning obligation agreements. Legal Legal Services have considered the content of the S ection 106 agreements referred to in this report and concludes that the recommendation presented is consistent with the terms of the respective agreements. Infrastructure/ Asset Management There are no Infrastructure/ Asset Management implications arising from the recommendations in this report. Comments from other relevant service areas The schemes have been developed in consultation with relevant service groups as appropriate. Cabinet Member Report – 11 August 2023 Page 6 Part I – Public BACKGROUND PAPERS Planning Obligations Supplementary Planning Document Adopted July 2008 and amended July 2014.